RHINEBECK, N.Y. -- The developer of a proposed 80,000-square-foot expansion of Northern Dutchess Hospital wants a tax plan that would require no payments for seven years, the Village Board was told Wednesday night.

Jeff Kane, project manager for Kirchhoff Medical Properties, said the company is seeking approval of a payment-in-lieu-of-taxes, of PILOT, plan that would waive $114,552.94 in payments.

"What we heard from the (Rhinebeck) school district is, under the state-mandated 2 percent tax levy cap, the proposed PILOT payments aren't additional revenue to the taxing jurisdiction," Kane told the board. "Our response to that ... is we propose a much shorter term for the PILOT. We're asking it to be a seven-year PILOT and (starting) at the end of seven years, the additional tax is paid."

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Kane estimated the result would be a $17,699.80 tax bill in Year 8, the first year of payments, and a steady increase ending with a $22,447.62 bill in Year 20, which is when the developer previously planned to have the PILOT end. After that, taxes would be based on the property's assessment.

Kirchhoff announced the proposed expansion of the Rhinebeck hospital in September. The new three-story section of the facility is to cost $30 million to build, the company said at the time.

Each floor is to measure 25,000 square feet. The first floor would house medical office, the second would have 40 single-occupancy patient rooms, and the third would have six operating rooms.

"The core of the hospital where the inpatient beds (are) ... no longer meets codes," said hospital President Denise George. "We are not able to go in and renovate."

The proposal also calls for a 5,000-square-foot basement, an expanded parking area, landscaping and utility upgrades.

The plan calls for the new portion of the hospital to be owned by Kirchhoff but possibly turned over to Northern Dutchess's owner, Health Quest.